Financial services job cuts

According to a survey from the Confederation of British Industry (CBI) and PricewaterhouseCoopers, the financial service sector jobs are being cut at their fastest rate since 1993.

The survey shows that staff turnover slumped for the fourth quarter in a row. This is mainly due to hesitancy around changing jobs and a shortage of vacancies.The survey also recorded a successive heavy quarterly decline in business volumes in the financial industry, with only 9% of services firms saying volumes had risen and 56% reporting a drop. Furthermore profitability also fell, while investment plans have been scaled back.

Ian McCafferty, CBI chief economic adviser, says: Conditions remain exceptionally tough in the financial services sector, and have not been helped by equity markets having fallen further since our last survey in December. Sharp drops in revenues and profitability are causing continued suffering, while business volumes remain very weak. Firms are making heavy cuts to staff numbers and investment plans to make savings and reflect weak demand.